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jetrii said:
Although I think this discussion is interesting and I would love for games to distributed on flash drive, it simple isn't going to happen. The cost per gigabyte is too high and will ALWAYS be many times more expensive than optical media. Even if they can get it down to something as cheap as a dollar per drive (very unrealistic), that is still extremely expensive. The amount of money they would have made throughout the console's life with optical media would be in the hundreds of millions.

In fairness, there are ways to cut those costs down to a more manageable level, and only so much data can be used at a given time with a reasonable budget.